Judge: Barbara M. Scheper, Case: 24STCV01725, Date: 2024-12-06 Tentative Ruling

Case Number: 24STCV01725    Hearing Date: December 6, 2024    Dept: 30

Dept. 30

Calendar No.

Franco, et. al. vs. City of Los Angeles, et. al., Case No. 24STCV01725

 

Tentative Ruling re:  Defendant’s Motion for Stay of Proceedings

 

The City of Los Angeles (Defendant) moves to stay this action and continue the current trial date pending the completion of the bankruptcy proceeding involving Andres Rodriguez Franco (Plaintiff). The motion is granted.

“Trial courts generally have the inherent power to stay proceedings in the interests of justice and to promote judicial efficiency.” (Freiberg v. City of Mission Viejo (1995) 33 Cal.App.4th 1484, 1489.) “In ruling on a motion for a stay order, the assigned judge must determine whether the stay will promote the ends of justice, considering the imminence of any trial or other proceeding that might materially affect the status of the action to be stayed, and whether a final judgment in that action would have a res judicata or collateral estoppel effect with regard to any common issue of the included actions.” (Rules of Court, rule 3.515(f).)

A party seeking a continuance of the date set for trial must make the request for a continuance by a noticed motion or an ex parte application as soon as reasonably practical once the necessity for the continuance is discovered.  (Cal. Rules of Court, rule 3.1332(b).) The request for continuance may be granted on an affirmative showing of good cause. (Id., rule 3.1332(c).)  Grounds for continuance include “[a] party’s excused inability to obtain essential testimony, documents, or other material evidence despite diligent efforts.” (Id., rule 3.1332(c)(6).)

 

Factors to be considered in determining whether good cause exists include: the proximity of the trial date; whether there was any previous continuance, extension of time, or delay of trial due to any party; the length of the continuance requested; the availability of alternative means to address the problem that gave rise to the motion or application for a continuance; the prejudice that parties or witnesses will suffer as a result of the continuance; whether trial counsel is engaged in another trial; whether the interests of justice are best served by a continuance; and any other fact or circumstance relevant to a fair determination of the motion or application. (Id., rule 3.1332(d).)

 

“The filing of a petition for bankruptcy operates as an automatic stay of the commencement or continuation of any action against a bankrupt debtor or against the property of a bankrupt estate. 11 U.S.C. § 362(a). The automatic stay tolls ‘applicable nonbankruptcy law [that] fixes a period for commencing or continuing a civil action in a court other than a bankruptcy court on a claim against the debtor ...’ or against the property of the debtor.” (U.S. v. Dos Cabezas Corp. (9th Cir. 1993) 995 F.2d 1486, 1491.) While the automatic stay does not generally extend to parties other than the debtor, there is a narrow exception where the debtor is an indispensable party to the litigation. (Cross v. Cooper (2011) 197 Cal.App.4th 357, 365 fn 2 [citing Matter of James Wilson Associates (7th Cir. 1992) 965 F.2d 160, 170].)

Moving Defendant argues that this action should be stayed pending completion of Plaintiff’s bankruptcy proceedings. The motion is unopposed. Plaintiff’s action is for damages arising out of a collision with a vehicle driven by an employee of Defendant. Defendant has filed a cross-complaint against Plaintiff seeking damages for the accident. Plaintiff filed for Chapter 7 bankruptcy on February 9, 2024. (Valadez Decl. ¶ 4, Ex. B.) Should the jury find in Defendant’s favor in the present case, it is uncertain whether Defendant could collect from Plaintiff without knowing the result of the bankruptcy proceeding. Defendant is at risk of incurring litigation costs without any opportunity for compensation upon victory. Accordingly, the Court finds it in the interests of justice to stay the present proceedings and vacate the current trial date.